License suspension can occur for many reasons. If you receive notification from the Department of Motor Vehicles of your suspension, the most important thing for you to do is to not drive.
You may have your driving privileges reinstated after a certain period, or appeal the decision. But, in the meantime, what should you do about auto insurance? Should you maintain your car insurance with a suspended license?
Do You Own a Vehicle?
If you own a vehicle, you should maintain auto insurance on it. Not doing so could put your vehicle at risk. For example, most car insurance policies not only cover you, as the owner and driver but also other people who operate your vehicle. If you loan your vehicle to a friend for a trip to dinner and an accident occurs, your policy will still likely cover the damage to your vehicle, depending on the type of coverage you have. For this reason, if you own a car, it should have insurance on it. This includes property insurance and liability insurance.
Keep in mind that the state may still require you to maintain minimum liability insurance for the vehicle to be on the road. State minimums apply to the owner of the vehicle in some cases. Be sure to talk to your agent about your need for this coverage.
It can be less expensive to maintain auto insurance over a short suspension in your license than to stop and re-start insurance. That is, if you were to maintain car insurance over the license suspension, this may reduce the overall cost to you rather than having to stop and start a policy. Insurers often charge those who have not had coverage for some time (even a short while) significantly more than those who maintain coverage long-term.
Work with your auto insurance provider to learn more about the type and amount of coverage you should have with a suspended license. Most people will find that license suspension can raise rates as well. This may be a good time to look for different coverage or a different insurer to make sure you have the right type and amount of protection within your budget.
If you have questions about maintaining your auto insurance, give us a call at (914) 273-8511 today!